5 Recession-Proof Startups to Launch in a Volatile Economy

Economic recession is no joke. The economic recession has put a major cog in the wheel of some established entrepreneurs as well as new startup owners. A recent study by Startup Genome found that  74% of startups have seen revenue decline since the pandemic. What's even scarier is the number of them (16%) who have been forced to lay off 80% of their workforce. 

It's not uncommon for companies to hesitate to raise capital, or even to start a business. Experts warn of an impending global recession, causing companies to be cautious about expanding, recruiting new talent and retaining what they have. 

However, not all startups encounter difficulties during recessions and economic downturns. Some startups can actually thrive in times of economic crisis. As someone who has worked in the venture capital industry for more than a decade, sold several companies, and launched an accelerator program that helped more than 200 entrepreneurs, I've learned that there is a crucial difference. between startups that survive and succeed during the recession and those that do not. people who struggle and fail. This difference lies in the economic model itself. 

As  CEO of Builderall, an all-in-one solution that powers more than 20,000 small businesses worldwide, I have a bird's-eye view of the most successful business models. As other startups fail, startups in our ecosystem continue to attract more customers. In fact, we are not experiencing an economic recession. 

If you're wondering whether to start a business, scale your startup, or scale back your operations, read on to learn about five recession-proof businesses I recommend in period of chaos: 

1. Service company

Whenever you provide a qualified service to your customers, whether online or offline, it is a service-based business. For example, an accounting/accounting service or a digital marketing agency both offer services that require specific knowledge and expertise. These companies are really crushing it these days – and for many reasons:

Their start-up costs are low. Entrepreneurs can start with a lower initial investment and fewer subsequent capital injections. They can operate with  minimal labor. Businesses can operate fully remotely with the benefit of tapping into low-cost talent markets or adopt a hybrid approach.

Faster sales and revenue generation. Receiving payments from new customers and generating cash flow happens much faster.

 Recurring payments keep the money coming in. Service-based businesses can benefit from using a subscription or retention model. This ensures two things:

Loyal customers and a constant revenue stream in exchange for ongoing services.

Customers bear costs effectively, reducing the need for venture capital or working capital. Then, three years later, they had built  a solid  base of recurring revenue customers who simply continued to make monthly payments and the money from those payments became expenses. your activity.

 2. Influencer marketing

You really can't go wrong when it comes to being an influencer. It wouldn't be an exaggeration to say that influencers are currently ruling the digital world. Look at what Khaby Lame, Zach King, Addison Rae and Charli D'Amelio did. Over my years in business, I've closely followed the rise of several famous influencers, and I've noticed two things they have in common:

Firstly, all successful influencers work in a specific space or  a specific field in which they are experts and know what they are talking about. And second, they are pure content creators and their content resonates with their audience, helping them attract more followers.  Once you have amassed a significant number of followers on social media platforms like Instagram, YouTube or TikTok, that's when the magic begins. You leverage your online presence to engage with your audience and promote products or services,  becoming a brand advocate for the companies you partner with.

 3. Brand ambassador

Becoming a brand ambassador is a close branch of the influencer industry. Brand ambassadors are always the foundation of successful marketing for many businesses. Back in the day, when social media didn't exist, only A-list celebrities, professional athletes, and musicians received big dollars for their endorsements.

Like influencers, brand ambassadors also excel in specific fields. They position themselves as opinion leaders or experts, and their associations give credibility to the brands they endorse. While influencer relationships are often one-time deals, brand ambassadors often work with the same brand for many years and provide a higher level of exposure and education for their audience.

4. Online Educator

As skill development and side hustles have become buzzwords, I've seen a lot of people ask themselves, "What else can I  do?" on social media platforms like Reddit and Twitter. People who are laid off want to upgrade their skills and are willing to pay hundreds or even thousands of dollars to continue their professional training rather than go back to college or seek an advanced  degree. This is the main reason why online educators make money by selling their online courses.

 Nowadays, people learn all kinds of skills on online learning platforms. For example:

• How to turn sketches into finished works of digital art
• How to compose music 
• How to create effective marketing channels
• How to write a script

Online educators are just regular people who are good at what they do. Becoming an online educator is just about taking the knowledge  they have, integrating it into a course, and selling it. They develop a comprehensive course structure and offer courses that cover a wide variety of topics, from practical skills to creative arts and everything in between. The platform's user-friendly online learning tools make it easier than ever.

Marketing, business, entrepreneurship, creative arts, programming and personal development are always popular with learners. 

 5. Unique products

Selling a unique product can be a daunting task. But when a company achieves this feat, it can consider itself virtually immune to economic downturns. There are startups in the market that sell a unique product to a small but interesting group of consumers. It could be a t-shirt, a sticker, a plush toy, or anything else.  How to create effective marketing channels

Online educators are just regular people who are good at what they do. Becoming an online educator is just about taking the knowledge  they have, integrating it into a course, and selling it. They develop a comprehensive course structure and offer courses that cover a wide variety of topics, from practical skills to creative arts and everything in between. The platform's user-friendly online learning tools make it easier than ever.